KEY POINTS:
One unfortunate aspect of the Vodafone pricing furore that has tainted tomorrow's launch of the iPhone 3G is that it reinforces the notion that mobile internet access is expensive.
On the whole that notion is correct. But cellular data is a weird commodity. It's possible for Vodafone customers to pay anywhere between 3c and $11.25 for a megabyte (MB) of data downloaded over the cellular network.
The $11.25 figure is the "casual" rate the telco charges customers who aren't tied into any data plan. The 3c rate is what someone on the new top-end $250-a-month iPhone plan will pay for each MB they use beyond the 1000MB (1GB) monthly cap that comes included with the plan. That $250 plan has been the focus of much outrage from potential iPhone buyers who now swear they're reconsidering buying the ultimate in cool communication gadgets.
They're right to feel aggrieved. Vodafone's marketing department made the mistake of hyping the iPhone launch along the lines that the device would cost "from $199".
But it later transpired that to get the iPhone for that price you needed to sign up to a two-year contract on the $250-a-month plan.
For $250 you get 600 minutes of calling, 600 texts and the GB of data - a hefty bundle of services which, if you happen to need them, equate to reasonable value compared to the other options available in the New Zealand mobile market.
And yes, as Vodafone points out, you can sign up for cheaper iPhone plans. But it's clear the company has misjudged its iPhone clientele. They had been looking forward to getting access to a revolutionary device that has the potential to free web browsing from the constraints of a fixed internet connection or a clunky laptop.
But now a constraint remains in the form of mobile data costs.
It's a shame because Vodafone finally seems to be working out that if mobile data is cheaper more people will use it and ultimately the company's revenue will increase.
From July 28 that horrendous $11.25 per MB rate disappears as Vodafone introduces a vastly improved $1 a day casual rate for up to 10MB of data.
And prices will eventually come down further. The growth of alternative wi-fi internet connection options for users of iPhone-like devices will put pressure on telcos to cut mobile data rates even more.
